THE hated Tampon Tax is to be abolished in next week’s Budget.
The move comes in a bid to show the Tories are delivering on their election promises.
Chancellor Rishi Sunak will scrap the five per cent VAT rate on all sanitary products to cut their cost.
The reduction is a Brexit dividend, as under EU law the Government has been forced to levy a sales tax on the vital items.
Senior Government figures said the change would be part of an array of measures pledged by Boris Johnson in his party’s manifesto.
The PM has told his new No 11 neighbour to include as many pledges as possible in his first financial blueprint for the nation on Wednesday in an attempt to cement trust with the thousands of Labour switchers.
Another manifesto promise in the Budget will be the £100-a-year tax cut on income when the National Insurance contributions tax-free threshold is raised to £9,500.
A Tory Cabinet minister said: “We’re going to do what we said we were going to do.”
Scrapping the tax will cut the cost of a pack of 20 tampons by 7p, and a pack of 12 pads by 5p.
The new levy will come into force on January 1, 2021.
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